Discussion case
This case was prepared by Jakob Utgård as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. © licensed under CC BY-NC-SA 4.0. Jakob Utgård © 2025.
The case company in this case is fictitious.
Fjordsalmon ASA is one of Norway’s large salmon producers. Founded in the early 2000s, the company expanded from a single coastal site to a large aquaculture business with operations in smolt production, sea cages, harvesting, and processing. The company started as family-owned, but is now listed on the Oslo Stock Exchange. Fjordsalmon markets itself as a responsible producer of healthy protein to a growing global population, and its financial performance has made it a favorite among investors seeking stable returns and long-term industry growth.
Like many salmon farming companies, Fjordsalmon creates positive impacts. It supports employment in 9 different rural coastal communities, contributes to national export revenues, and supplies a product with relatively low greenhouse-gas emissions compared with other animal proteins. The company has invested in fish welfare, vaccines that reduce antibiotic use, and digital monitoring systems to track water quality and fish health.
Yet salmon farming also carries well-known environmental risks. Farmed salmon escape and mix with wild stocks, weakening genetic diversity. Sea lice is a threat to salmon in farms as well as wild salmon, and high fish densities generate waste that affects local marine ecosystems. Mortality varies with different factors but can be high. The feed used for production contribute indirectly to global land use and emissions through soy or fishmeal supply chains. Despite technological improvements, the industry faces criticism for its ecological footprint. Fjordsalmon is affected by all these issues.
Fjorsalmon now faces a strategic decision: whether to expand its sea-farming operations by adding two new high-capacity sites. From a financial perspective, expansion is attractive. Larger volumes could lower production costs and boost profitability. Investors view the proposal positively, expecting higher dividends and growth.
Stakeholders are divided. Local fishers worry about impacts on wild salmon and coastal ecosystems. Environmental groups argue that expansion will intensify pressures on marine habitats and increase the likelihood of escapes, disease and mortality. Local communities welcome the prospect of more jobs and investment. The government and regulators is concerned with the negative effects of fish farming, but see the industry as an important source of jobs and wealth on the coast, and has both strengtened regulation standards and opened up for new production licences, one of which Fjordsalmon has bid for.
Discussion questions:
- What would be Fjordsalmon’ decision on expansion or not using the shareholder, stakeholder and true sustainability perspectives?
- What should Fjordsalmon decide?
- What does Fjordsalmon need to do to become truly sustainable?